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Notes to Accounts of Jindal Poly Films Ltd.

Mar 31, 2017

1. Related Party Transactions:

a. Entities are member of the same group as per para 9(b)(i) of Ind AS 24 (Related Party Disclosure), where reporting entity is a member (comprising subsidiaries and fellow subsidiaries)

1 Jindal Films India Limited

2 Global Nonwovens Limited

3 JPF Netherland B.V.

4 JPF Dutch B.V.

5 JPF USA Holding LLC

6 Jindal Films America LLC

7 Films Macedon LLC

8 Jindal Films Europe Virton LLC

9 Jindal Films Europe Brindsi Srl

10 Jindal Films Europe Kerkrade B.V

11 Jindal Films Europe S.a.r.l

12 Jindal Films Singapore Pte.Ltd

13 Jindal Films (Shanghai) Co. Ltd.

14 Jindal Films Europe Virton SPRL

15 Jindal Imaging Ltd

16 Jindal Photo Imaging Ltd

17 Jindal Films Europe Services S.a.r.l

18 Jindal Packaging Trading DMCC (incorporated dated 25 August 2016, refer note 58)

19 Rexor SAS (w.e.f. 17th July 2016)

b. Associates of the Reporting Entity

1 Rexor SAS (till 16th July, 2016)

2 Hindustan Powergen Limited (till Feb 2017, refer note 57)

c. Key Management Personnel of the Reporting Entity

1 Sh. Sanjay Digamber Kapote (Whole Time Director)

2 Sh. S D Gosavi (Whole Time Director)

3 Sh. Manoj Gupta (Chief Financial Officer)

4 Sh. Sanjeev Kumar (Company Secretary)

d. “Major shareholders of the reporting entity” and “Enterprise owned by major shareholders of the reporting entity”

1 Consolidated Finvest & Holdings Ltd.

2 Jindal Poly Investment & Finance Company Limited

3 Jindal India Limited

4 Anchor Image and Films Private Ltd

5 Anchor Image and Films Pte Limited Singapore

6 Jindal Photo Investment Limited

7 Soyuz Trading Company Limited

e. Other Enterprises

1 Jindal India Powertech Limited

2 Jindal India Thermal Power Limited

3 Jumbo Finance Limited

4 Jupax Barter Pvt. Ltd.

5 Jindal Photo Limited (Investment Division)

6 Consolidated Photo & Finvest Ltd

Note:- Reporting entity for above related party disclosures refers Jindal Poly Films Limited.

Comprehensive disclosure of investments as at 31st March 2017 has been made in Note 3 to the Financial Statements, hence closing balance of other investments (Equity Shares/Preference Shares) having no movement during the year were not again disclosed in above statement.

**balance excluding interest

2. A sum of Rs 467.34 Lacs (previous year Rs 1392.18 Lacs) being the difference between domestic and imported raw material prices prevailing at the year ended on 31st March 2017 on account of advance license excess utilized for which exports are yet to be made, has been adjusted in the cost of material.

3. Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above scheme aggregating Rs 5577.35 Lacs (previous year Rs 5214.31 Lacs) has been accrued. These Grants related to acquisition of property, plant & equipment are recognized in the balance sheet by setting up the grant as deferred income and are recognized in statement of profit and loss on a straight line basis on the expected remaining lives of the related assets/project and presented as net off from depreciation expenses of the period.

4. The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

5. Trade Receivables include Rs 63.50 Lacs (previous year Rs 53.23 Lacs) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.

6. Advance receivable in cash or in kind includes Rs 282.54 Lacs (previous year Rs 282.54 Lacs) being the amount of customs duty deposited against import of capital goods assessed under provisional assessments in earlier year.

7. Stores & Spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

8. Exceptional items represents gain/loss being exchange difference on translation/settlement of long term foreign currency loans for acquiring fixed assets.

9. SEGMENT INFORMATION

10. Description of segments and principal activities

Segment information is presented in respect of the company''s key operating segments. The operating segments are based on the company''s management and internal reporting structure.

The company''s board examines the Company''s performance both from a product perspective and have identified two reportable segments of its business:

1 Packaging Films

2 Photographic Products

The Company''s board reviews the results of each segment on a quarterly basis. The company''s board of directors uses Earnings Before Interest and Tax (EBITA) to assess the performance of the operating segments.

11. Geographic information

The segments are managed on a worldwide basis, but operate manufacturing facilities and sales offices in India. The geographic information analyses the Company''s revenue and receivables from customers of Company''s country of domicile and other countries. In presenting the geographic information, segment revenue has been based on the geographic location of customers.

Other Information’s

The Company has common assets for producing goods for domestic market and overseas market.

12. Major Customer

Sales of the Company is evenly distributed, disclosure of major customer could not be made.

FVTPL refers fair value through profit and loss

13. Fair Value Hierarchy

(a) This section explains the judgments and estimates made in determining the fair values of the financial instruments. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

There are no transfers between level 1 and level 2 during the year

(b) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 2 or level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

(c) Fair Value Estimations

Estimated fair value disclosures of financial instruments are made in accordance with the requirements of Ind AS 107 “Financial Instruments: Disclosure”. Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm''s length transaction, other than in forced or liquidation sale. As no readily available market exists for a large part of the Company''s financial instruments, judgment is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. The estimates presented herein are not necessarily indicative of the amounts the Company could realize in a market exchange from the sale of its full holdings of a particular instrument.

The following summarizes the major methods and assumptions used in estimating the fair values of financial instruments.

Interest-bearing borrowings

Fair value is calculated based on discounted expected future principal and interest cash flows. The carrying amount of the Company''s loans due after one year is also considered as reasonable estimate of their fair values as the nominal interest rates on the loans due after one year are variable and considered to be a reasonable approximation of the fair market rate with reference to loans with similar credit risk level and maturity period at the reporting date.

Trade and other receivables / payables

Receivables / payables typically have a remaining life of less than one year and receivables are adjusted for impairment losses. Therefore, the carrying amounts for these assets and liabilities are deemed to approximate their fair values, as the allowance for estimated irrecoverable amounts is considered a reasonable estimate of the discount required to reflect the impact of credit risk.

Other long term receivables

These receivables are regularly reviewed and adjusted for impairment losses. Therefore, management considers the carrying amount of these receivables to approximate fair value.

(d) Valuation Process

The accounts & finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee (AC).

Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the Company''s quarterly reporting periods.

The main level 3 inputs for unlisted equity securities, contingent considerations and indemnification asset used by the Company are derived and evaluated as follows:

- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

- Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk grading determined by the Company''s internal credit risk management group.

- Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.

Changes in level 2 and 3 fair values are analyzed at the end of each reporting period during the quarterly valuation discussion between the CFO, AC and the valuation team. As part of this discussion the team presents a report that explains the reason for the fair value movements.

14. FINANCIAL RISK MANAGEMENT

(a) Risk Management Framework

In the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the Company is exposed to and how it manages the risk.

(b) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in financial instruments.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.

Trade and Other Receivables

Credit risk is the risk that a customer may default or not meet its obligations to the company on a timely basis, leading to financial losses to the Company. The management has an advance collection /credit policy criteria in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. Before accepting a new customer, the Company uses an internal credit system to assess the potential customer''s credit quality and defines credit limits separately for each individual customer. The gross carrying amount of trade receivables as at 31st March 2017 aggregates Rs 9059.04 Lacs (Previous year ended 31st March 2016 Rs 12065.77 Lacs) and only insignificant trade receivables are due for more than six months from the reporting date. The Company reviews for any required allowance for impairment that represents its expected credit losses in respect of trade receivables.

Investments are reviewed for any fair valuation loss on periodically basis and necessary provision/fair valuation adjustments has been made based on the valuation carried by the management to the extent available sources, the management does not expect any investment counterparty to fail to meet its obligations.

(c) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due. The Company''s liquidity position is carefully monitored and managed. The Company has in place a detailed budgeting and cash forecasting process to help ensure that it has adequate cash available to meet its payment obligations.

(d) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices mainly comprise three types of risk: currency rate risk, interest rate risk and other price risks. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2017 and March 31, 2016. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange.

Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company''s functional currency (Rupees). Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.

Interest Rate Risk

The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2017 and 31 March 2016, the Company''s borrowings at variable rate were denominated in Indian rupees. Currently the Company''s borrowings are within acceptable risk levels, as determined by the management, hence the Company has not taken any swaps to hedge the interest rate risk.

* Applicable Indian Statutory Income Tax rate for Fiscal 2017 & 2016 is 34.608%. However, Company is required to pay tax u/s 115JB of Income Tax Act 1961 in Fiscal 2017.

15. CAPITAL MANAGEMENT

The Company manages its capital to ensure to continue as a going concern while maximizing the return to the equity holders through optimization of the debt to equity balance. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual , sourcing of capitalized one through judicious combination of equity and borrowing, both short term and long term.

Consistent with others in the industry, the Company monitors capital on the basis of the optimum gearing ratio of Net debt (comprising total borrowings net of cash & bank balances and current investment) in proportion to Total Equity.

16.PROVISION FOR POST-SALES CLIENT SUPPORT AND WARRANTIES:

Provision for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement based on the expected future cash outflows and computed on total sales made during the year, based on the past experience. Provision for the post-sales client support are expected to be utilized over a period of one year.

51 The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the Demerged Entity M/s Jindal Photo Limited (now being merged with the Holding Company M/s Jindal Poly Films Limited). Sales tax benefits for the year aggregates Rs 19.99 Lacs (previous year Rs 917.22 Lacs)

Further financial statements for the financial years 2005-06 to 2010-11 of Demerged Entity M/s Jindal Photo Limited (now being merged with the Holding Company M/s Jindal Poly Films Limited) were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 11288.57 Lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 2278.70 Lacs. As the claim is for the years for which normal revised return could not be filed, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:

Specified Bank Notes is defined as Bank Notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees.

17.Information related to Micro Enterprises and Small Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Development Act), are given below. The information given below have been determined to the extent such enterprises have been identified on the basis of information available with the Company:

18. Expenditure incurred on Corporate Social Responsibility

Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act, 2013 read with schedule VII are as below:

19.The Board of Directors of the Company at its meeting held on 23rd August 2016 has approved the scheme of amalgamation of Global Nonwovens Limited (“Amalgamating Company”), a wholly owned subsidiary with Jindal Poly Films Limited (“Amalgamated Company”).

As per the scheme, the amalgamating company shall stand transferred to and be vested in the amalgamated company. This scheme has been approved by BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) vide letter 14th October, 2016. Thereafter Petition was filed with Hon''ble High Courts, Allahabad and Mumbai; latter on matter was transferred to National Company Law Tribunal (NCLT), Allahabad Bench and Mumbai Bench by respective High Courts. Now the National Company Law Tribunal (NCLT), Allahabad Bench in its hearing held on 7th April, 2017 has sanctioned the Scheme and matter is now pending before the National Company Law Tribunal (NCLT), Mumbai Bench. Pending approval and filling with Registrar of Companies (ROC), financial statements of amalgamating company has not been incorporated in amalgamated company as at 31st March 2017.

20. During the year, one of Indian associate of the Company M/s Hindustan Powered Limited has been merged with other entity due to effectiveness of the scheme of amalgamation. Pursuant to the scheme of amalgamation, shares of M/s Hindustan Powergen Limited would have been cancelled and in consideration proportionate shares as per the determined ratio, would be allotted in the surviving amalgamated entity, issuance of these shares is under process. Accordingly M/ s Hindustan Powergen Limited being no longer an associate of the Jindal Poly Films Limited as at 31st March 2017.

21. During the year Jindal Packaging Trading DMCC has been incorporated on 25th August 2016 (legal seat in Dubai), with infuse of initial share capital by Jindal Poly Films Limited of 100 shares of AED 1000 each aggregating equivalents INR

22. Lacs, resulting in a wholly owned subsidiary of the Jindal Poly Films Limited.

23. Events after the Balance Sheet Date

The Board of Directors, in its meeting held on 25th May 2017 has recommended dividend of Rs 1 per equity share aggregating Rs 527.00 Lacs including corporate dividend tax of Rs 89.13 Lacs for the financial year ended 31st March 2017 and sale is subject to approval of shareholders at the ensuing Annual General Meeting and as per Ind AS, has not been shown as a liability in the financial statements for the year ended 31st March 2017.

24. Previous GAAP figures have been reclassified/regrouped to conform to the presentation requirements under IndAS and the requirements laid down in Division-II to the Schedule-III of the Companies Act 2013.


Mar 31, 2016

b Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, 17,38,700 Equity shares of Rs 10/- each has been issued to the shareholders of Jindal Photo Limited (Refer Note 30).

c Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years.

17,38,700 Equity shares of Rs 10/- each, issued pursuant to the scheme of Arrangement (Refer Note 30 (a))

Terms/ rights attached to Equity shares

Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend, however same is subject to the approval of the shareholders in the Annual General Meeting of the Company.

1 The Board of Directors, in its meeting held on 30th May 2016 has recommended dividend of Rs 1 per equity share for the financial year ended 31st March 2016 and sale is subject to approval of shareholders at the ensuing Annual General Meeting. The Total dividend appropriation for the year ended 31st March 2016 amounted to Rs 5,27,00,296 including corporate dividend tax of Rs 89,13,883.

Securities :

(i) and (ii) Secured by First Pari passu Charge over immovable property including land and buildings and movable fixed assets

of the Company, situated at village Mundegaon at village Mukane , Igatpuri, District Nasik in the state of Maharashtra “ Nasik Plant”.

(ii) Further Foreign currency term loans from AKA Ausfuhrkredit Gesellschaft MBH, Germany and ING Bank (a Branch of ING-DiBa AG) aggregating Rs 14073.86 Lacs are guaranteed by Euler Hermes Aktiengesellschaft, Germany.

Terms of Repayments of Non-Current portion of Borrowings :

2.. Merger of Manufacturing Division of Jindal Photo Limited

The Hon''ble High Court of Judicature at Allahabad and Bombay vide their Order dated 12th October, 2015 and 26th February, 2016 respectively sanctioned the scheme of arrangement (''the scheme'') between Jindal Photo Limited (“Demerged Company”) and Jindal Poly Films Limited (“Resulting Company”) and their respective shareholders and creditors, pursuant to the provisions of section 391 to 394 and other provisions of the Companies Act, 1956 and/or Companies Act, 2013. The scheme became effective upon filing of certified copies of the Orders of the Hon''ble High Court of Judicature at Bombay on 31st March, 2016.

The scheme is effective from Appointed Date i.e. 1st April, 2014 inter alia provides for the demerger of the demerged undertaking as defined in part (III) of the scheme - Business of Manufacture, production, sale and distribution of photographic products of demerged company into the Resulting Company. Accordingly financial statements of the demerged entity has been incorporated for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.

(a) Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, as a Consideration, Jindal Poly Films Limited have allotted 17,38,700 (seventeen lac thirty eight thousand seven hundred) Equity shares of Rs. 10 each fully paid up in the capital of the company on 30th May,2016 in the ratio of 10 fully Paid-up equity shares of Rs. 10 each of the Company for every 59 Equity shares of Jindal Photo Limited held by shareholders of Jindal Photo Limited on record date i.e. 13th May, 2016. Accordingly these shares are treated as outstanding as on reporting date and are included for the calculation of basic earnings per share for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.

(b) The accounting of this Arrangement was done as per the scheme and the same has been given effect to in the financial statements as under:

i. The Resulting Company has recorded all assets and liabilities of the Demerged Undertaking vested in it pursuance to this scheme, at the respective book values thereof, as appearing in the books of account of the Demerged Company immediately before the appointed date.

ii. The Resulting Company has credited the aggregate face value of the New Equity shares of the Company issued by it to the members of the Demerged Company pursuant to this scheme to the share capital in books of accounts.

iii. The difference of the aggregate of face value equity shares allotted by the Company to the shareholders of the Demerged Undertaking, and the amount representing surplus of book value of assets over liabilities of the Demerged Undertaking has been recorded by the Resulting Company as Capital Reserve.

iv. Figures of demerged undertakings have been regrouped and/or rearranged wherever required to align with disclosure parameters of the Resulting Company.

‘Figures have been regrouped and/or rearranged wherever required to align with grouping of the Resulting Company.

31.7 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company List of Related Parties

(a) Subsidiary Companies

1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining Limited )

2 Global Nonwovens Limited

3 JPF Netherland B.V.

4 JPF Dutch B.V.

5 JPF UsA Holding LLC

6 Jindal Films America LLC

7 Films Macedon LLC

8 Jindal Films Europe Virton LLC

9 Jindal Films Europe Brindsi srl

10 Jindal Films Europe Kerkrade B.V

11 Jindal Films Europe s.a.r.l

12 Jindal Films singapore Pte.Ltd

13 Jindal Films (shanghai) Co. Ltd.

14 Jindal Films Europre Virton sPRL

15 Jindal Imaging Ltd (Pursuant to scheme of Arrangement)

16 Jindal Photo Imaging Ltd (Pursuant to scheme of Arrangement)

17 Jindal Films Europe services s.a.r.l. (incorporated as at 29th March 2016)

Note - M/s Films shawnee LLC and M/s Films LaGrange LLC Merged with JPF UsA Holding LLC.

(b) Associates

1 Rexor sAs

(Rexor Holding sAs merged with its wholly owned subsidiary Rexor sAs)

2 Hindustan Powergen Limited

(c) Key Managerial Personnel

1 sh. sanjay Mittal

2 Ms. sumita Dhingra (till 14.10.2015)

3 sh. s D Gosavi

4 sh. Manoj Gupta (Chief Finance Officer) (w.e.f. 28.05.2015)

5 sh. sanjeev Kumar (Company secretary)

(d) Enterprise owned by Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 soyuz Trading Company Limited

3 Rishi Trading Company Limited

4 Consolidated Finvest & Holdings Ltd.

5 Jindal Poly Investment & Finance Company Limited

6 Jindal India Limited

7 Anchor Image and Films Private Ltd

8 Anchor Image and Films Pte Limited singapore

(e). Other Enterprises

1 Jindal India Powertech Limited

2 Jindal India Thermal Power Limited

3 Jumbo Finance Limited

4 Jupax Barter Pvt. Ltd.

5 Jindal Photo Limited (Residual Investing Business)

6 Consolidated Photo & Finvest Ltd

‘includes Preference shares purchased aggregating Rs 39,29,00,000 from Jindal Photo Limited (Residual Investing Business)

Note : Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.

3. Disclosure under Regulation 34(3) of “Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015”

Loans and advances outstanding at the year end and maximum amount outstanding during the year, as required to be disclosed under schedule V and Regulation 34(3) of “securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015” are as follows: ‘Comprehensive disclosure of investments as at 31st March 2016 has been made in Note 10 to the Financial statements, hence closing balance of other investments (Equity shares/Preference shares) having no movement during the year were not again disclosed in above statement.

‘‘balance including interest

Note: Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.

4. Segment Reporting

Pursuant to the scheme of arrangement for merger of manufacturing business of Jindal Photo Limited having different photographic products, the management has classified the business in two reportable segment, as defined in Accounting standard - 17 (segment Reporting) as follows :

- Plastic Films Business

- Photographic Division

The Company has common assets for producing goods for domestic market and overseas market.

5. Provision for Post-sales Client support and Warranties:

Provisions for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement, based on the expected future cash outflows and computed on total sales made during the year, based on past experience. Provision for post-sales client support are expected to be utilized over a period of one year.

6. (a) The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) and in view of legal opinion received from experts and as per Ads-12 such benefit being in nature of capital receipt has been reduced from Gross sales and credited to Capital Reserve.

(b) Further financial statements for the financial years 2005-06 to 2010-11 of Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 1,12,88,56,658 as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 22,78,69,632. As the claim is for the years for which normal revised return could not be filed, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:

7. (a) A sum of Rs.13,92,18,077 (previous year Rs.13,11,88,659) being the difference between domestic and imported raw material prices prevailing at the year ended on 31st March 2016 on account of advance licenses excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

(b) Under the Package scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the state Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above said scheme amounting to Rs 52,14,31,163 (previous year Rs. 51,57,72,707) has been added to Capital Reserve .

(c) The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

8. During the year, the Company had invested Rs. 39,29,00,000 in the Zero Percent redeemable preference share capital and Rs 249,00,00,000 in Zero Percent Optionally Convertible Preference shares M/s of Jindal India Powertech Limited (JIPL), a group company. JIPL is the holding Company of Jindal India Thermal Power Limited (the borrower).

9. (a) Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

(b) sundry Debtors include Rs.53,23,605 (previous year Rs. 46,06,143) under litigation, AGAINST which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.

(c) In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet.

10. (a) Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited AGAINST import of capital goods assessed under provisional assessments in earlier year.

(b) Non - Current Investment includes 6 shares of Jindal Films India Ltd (Previously known as Jindal Metal & Mining Ltd) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) Pursuant to the scheme of Arrangement (Refer Note 30), investment held by Demerged Undertaking (M/s Jindal Photo Limited) in equity shares of M/s Jindal Imaging Limited and M/s Jindal Photo Imaging Limited has been transferred to Resulting Company (M/s Jindal Poly Films Limited), accordingly these equity shares has been considered as Non-Current Investments of the Resulting Company, however issuance of these shares in the name of M/s Jindal Poly Films Limited is under process.

(d) stores & spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

11. (a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting standard - 24 (Discontinuing Operations) referred to in section 133 of the Companies Act 2013.

Following is extracts of financial information included in loss from discontinued operations for the Gulaothi and Khanvel unit:-

(b) since FY 2006-07, the company was in the process of disposal of its unused plant & machineries and store items at Gulaothi Unit (Discontinued Operation). During the year, a part of such unused plant and machineries was reported to have been removed inappropriately. The management is taking due actions for recovery and do not consider any impairment/ provision for loss, if any, on this account as the credit balance of parties and realizable value of remaining assets is likely to exceed the book value of assets.

(c) As per Accounting standard -28 “Impairment of Assets” referred to in section 133 of the Companies Act 2013, no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

12. Exceptional items represents Loss of Rs. 1,58,31,145 (previous year Rs 2,98,35,055) being exchange differences on translation/settlement of long term foreign currency loans for acquiring fixed assets.

13. Information related to Micro Enterprises and small Enterprises, as defined in the Micro, small and Medium Enterprises Development Act, 2006 (MsME Development Act), are given below. The information given below have been determined to the extent such enterprises have been identified on the basis of information available with the Company:

14. During the year, the erstwhile associate M/s Rexor Holding sAs has been merged with its wholly owned subsidiary M/s Rexor sAs, with effect from 1st April 2015, sanctioned as per order dated 21st October 2015 by an Foreign Authority (Greffe du Tribunal de Commerce de Vienne) and accordingly post-merger the surviving entity M/s Rexor sAs has become the associate of M/s Jindal Poly Films Limited. Pursuant to the scheme of merger, shares of M/s Rexor Holding sAs have been cancelled and in consideration proportionate shares as per the determined ratio, has been allotted in the surviving entity M/s Rexor sAs comprising 11163 Equity shares at Face Value of Euro 3506 allotted to M/s Jindal Poly Films Limited.

15. The Company has pledged 4,88,76,000 equity shares of Rs 10/- each of M/s Global Nonwoven Limited a subsidiary company and mortgaged 26.54 acres land of the Company situated at Nasik Maharashtra (Land being Leased out to Global

(i) Rs 716.79 Lacs (Previous year Rs. 2013.08 Lacs) - Repayable in one half yearly installment (Previous Year 3 equal half yearly installments), carrying fixed interest rate of 3.77% p.a. (Previous Year 3.77 % p.a.).

Rs 8124.73 Lacs (Previous Year Rs. 4375.00 Lacs) - Repayable in 5-6 Fixed half yearly equal installments (Previous Year 7-8 half yearly equal installments), carrying interest rate of (Libor 3.18%) p.a. (Previous Year (Libor 3.18%) p.a.).

Rs 8605.65 Lacs (Previous Year Nil)- Repayable in 18 Fixed half yearly equal installments (Previous Year Nil), carrying interest rate of (Euribor 0.85%) p.a. (Previous Year Nil).

Rs 11900.41 Lacs (Previous Year Rs 11213.94 Lacs) - Repayable in 20 Fixed quarterly equal installments (Previous Year 20 Fixed quarterly equal installments), carrying interest rate of (Libor 4.00%) p.a. (previous year (Libor 4.50%)).

(ii) Rs 5962.50 Lacs (Previous Year Rs. 7987.50 Lacs) - Repayable in 9 quarterly installments (Previous Year 13 quarterly

installments), carrying interest based on Base Rate (presently 10.15%) (previous year 10.60%).

Rs 1700.00 Lacs - Repayable in 21 quarterly installments (Previous Year Nil), carrying interest rate of 10.60% p.a. (Previous Year Nil).

Securities

(i) Secured by hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the plastic films business of the company .These are further secured by way of second pari-pasu charge on immovable & movable properties of the plastic film business of the company situated at Gulaothi (U.P.) and Nasik (Maharashtra).

(ii) Secured by first charge by way of hypothecation of stocks of raw material, semi finished and finished goods and consumable stores, spares and book debts and receivables both present and future of the photographic division of the company, ranking paripassu with working capital loans sanctioned by other participating banks for photographic division of the Company.

16. Includes the depreciation related to discontinued operations, amounting Rs.75,98,197 (previous year Rs. 1,60,75,255).

17. Interest Expenses and Foreign Exchange Fluctuations directly attributable to the acquisition of fixed assets are being capitalized during the year as part of the cost of the assets up to the date of such asset is ready for its intended use aggregating Rs 4,00,98,225 and Rs 6,79,81,383 respectively.

18. Management based on the internal and technical evaluation (covering past experience and the performance of substantial parts of the plant & machineries of the site) has identified, to the extent practicable, significant parts i.e. components of fixed assets, primarily consisting of plant & machineries and reassessed the useful life of these components for adoption of component accounting approach, as applicable w.e.f. 1st April 2015 to the Companies Act 2013 and believe that useful life determined/applied as per schedule II on these substantial identified components, fairly reflects its estimate of useful life and residual value of machineries.


Mar 31, 2014

1 DISCLOSURE UNDER CLAUSE 32

Loans & advances outstanding at the year end and maximum amount outstanding during the year, which are required to be disclosed Under clause 32 of the listing agreement are as under:-

2 SEGMENT REPORTING AS PER AS-17

i) Primary Segment

The Company''s business activity falls within a single primary business segment of Flexible Packaging.

The company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for capital employed can not be furnished.

3 A) As required by Accounting Standard-18 "Related party disclosures" are as follows.

List of Related parties

a. Subsidiary Companies

1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining Limited )

2 Jindal Metal & Mining International Limited

3 Global Nonwovens Limited (w.e.f. 14.02.2014)

4 JPF Netherland B.V. (w.e.f. 18.01.2013)

5 JPF Dutch B.V. (w.e.f. 21.01.2013)

6 JPF Netherland Holding B.V. (w.e.f. 28.01.2013)

7 JPF USA Holding LLC (w.e.f. 23.01.2013)

8 JPF USA LLC (w.e.f. 24.01.2013)

9 JPF ITALY Holding SA (w.e.f. 14.05.2013)

10 JPF Luxembourg Holding S.a.r.l (Ltd. Liab. Co.) (w.e.f.14.05.2013)

11 Jindal Films America LLC (w.e.f. 01.10.2013)

12 Films Shawnee LLC (w.e.f. 01.10.2013)

13 Films LaGrange LLC (w.e.f. 01.10.2013)

14 Films Macedon LLC (w.e.f. 01.10.2013)

15 Jindal Films Europe Virton LLC (w.e.f. 01.10.2013)

16 Jindal Films Europe Brindsi Srl (w.e.f. 01.10.2013)

17 Jindal Films Europe Kerkrade B.V (w.e.f. 01.10.2013)

18 Jindal Films Europe S.a.r.l (w.e.f. 01.10.2013)

19 Jindal Films Singapore Pte.Ltd (w.e.f. 01.10.2013)

20 Jindal Films (Shanghai) Co. Ltd. (w.e.f. 10.09.2013)

21 Jindal Films Capital LLC (w.e.f. 01.10.2013)

22 Films International LLC (w.e.f. 03.12.2013)

b. Associates

1 Rexor Holding SAS

(Formerly Known as Jindal France SAS)

2 Hindustan Powergen Limited

NOTES

c. Key Management Personnels

1 Sh. Hemant Sharma (Upto 28.02.14)

2 Sh. R.B. Pal

3 Sh. Sameer Banerjee (Upto 25.09.13)

4 Sh. Inna Chandrakantha Rao (w.e.f. 01.03.14)

5 Sh. Sanjay Mittal (w.e.f. 25.09.13)

d. Enterprise owned by Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 Soyuz Trading Company Limited

3 Rishi Trading Company Limited

4 Consolidated Finvest & Holdings Ltd.

5 Jindal Poly Investment & Finance Company Limited

6 Jindal India Limited

7 Anchor Image and Films Private Limited

8 Anchor Image and Films Pte. Limited Signapore

e. Other Enterprises

1. Jindal India Powertech Limited

2. Jindal India Thermal Power Limited

3.2 Contingent Liabilities:

a.Bank Guarantees 16,94,89,982 18,50,76,397

b.Corporate Guarantees in favour of overseas lender of Subsidiaries 9,14,36,14,000

c. Outstanding Letters of Credit (Including Capital Goods) 89,31,49,730 72,66,17,154

d. Claims against Company, not acknowledged as debts 6,26,28,134 1,07,68,060

e.Demands raised by authorities against which, Company has filed appeals: -

i) Income Tax 13,41,84,802 5,11,44,555

ii) Excise Duties/Custom/Service Tax 8,13,13,695 7,95,76,725

iii) Sales Tax 19,29,34,553 19,21,49,092

3.3 Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December, 2011 and as required by Accounting Standard 11, Loss of Rs 26,76,48,936 (previous year loss of Rs 21,59,98,217) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

3.4 A sum of Rs.45,676,415 (previous year Rs.11,322,004) being the difference between domestic vs. imported raw mate- rial prices prevailing at the year ended on 31st March 2014 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Focus Market Scheme (FMS) amount to Rs 40,999,382. (Previous year Rs. Nil) has been credited in the account of raw material.

3.5 Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

3.6 Non – Current Investment includes 6 shares of Jindal Films India Ltd (Previously known as Jindal Metal & Mining Ltd). of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

3.7 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

3.8 Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year amount of subsidy receivable under the above said scheme amounting to Rs 512,030,553(previous Year Rs. 397,601,338) has been added to Capital Reserve.

3.9 In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

3.10 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

3.11 The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3.12 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

3.13 a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting Standard -24 issued by ICAI.Following is selected financial information included in loss from discontinued opera- tions for the Gulaothi and Khanvel unit:-

b) As per Accounting standard -28 " Impairment of Assets" issued by ICAI ,no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

3.14 During the financial year, the Company has demerged its investment division with Jindal Poly Investment and Finance Company Limited (JPIFCL) as per Section 391 to 394 of the Companies Act, 1956. The Hon''ble High Court of Judicature at Allahabad has approved the scheme and passed order on 16th May, 2013 to demerge the Company and the appointed date was 1st April, 2012. Consequently for the year ended 31st March 2014 the demerger has been effected in the books of accounts and accordingly the figure of previous year are re casted. Pursuant to the order of Hon''ble High Court, JPIFCL has issued and allotted equity shares in the ratio of 1 (one) equity share of face value of Rs 10/- each, fully paid-up, to each shareholder of the Company for every 4 (four) equity shares of face value of Rs.10/- each held by such shareholder in the Company on the record date i.e. 18th July, 2013. Accordingly, JPIFCL has issued and allotted to the shareholders of the Company a total of 1,05,11,929 fully paid up equity shares of Rs.10/- each. The equity shares of JPIFCL are listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).

3.15 During the quarter company acquire 4,28,00,000 equity shares of Global Non woovens Limited (GNL) with an investment of Rs.42.80 crore, after acquisition GNL become subsidiary of the Company during the year.

The Company has pledged 3,61,08,000 equity shares of Rs.10/- each of Global Nonwoven Limited "GNL" a subsidiary Company and mortgaged 26.54 acres land of the Company situated at Nasik, Maharashtra (Leased out to GNL) to SBICAP Trustee Company Limited as security for Rs. 287.70 crore loan availed by GNL from consortium of Bankers.

3.16 During the year the Company had invested INR 167 Crores in the Zero Percent Redeemable Preference Share Capital (Redeemable at a premium of 10% within 15 year from the date of allotment) of Jindal India Powertech Limited (JIPL), a group-SPV company. JIPL is the holding Company of Jindal India Thermal Power Limited, which is setting up Power Plant (600MW x 2) at village Derang, District Angul, Odisha. Further, pursuant to the resolutions passed by the Board of Directors of the the Company from time to time and the last one dated 20th July 2013, the Company, JIPL and Jindal Photo Limited have jointly and severally undertaken to the lenders of JITPL to meet any requirement towards shortfall in equity and other project costs overrun in JITPL, in the manner and form satisfactory to JITPL lenders.

3.17 The Company has completed the ongoing overseas acquisition of BOPP Films business (comprising of five manufacturing units) of ExxonMobil USA through its overseas subsidiary namely JPF Netherlands BV(51 % holding by the company and balance 49 % holding hold by Anchor Image & Films Pte Ltd, Singapore) and its steps down subsidiaries by way of investment in equity capital, unsecured loan and Corporate guarantees to the extent of USD 160 million in favour of lenders of overseas entities for the purpose. The interests in the overseas acquisition are reflected in consolidated financial statements of the Company as required by Indian Accounting Standard.

3.18 The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act, 1961 during the financial year 2011-12 on various premises of the company. The department had issued notice u/s 153 A for reassessment for the assessment years 2006-07 to 2011-12 . Assessment for AY 2010-11 & 2011-12 has been completed and are contested before CIT(A). Assessment for remaining years are in progress.

3.19 Previous year''s figures have been regrouped and/or rearranged wherever required.


Mar 31, 2013

1 SEGMENT REPORTING AS PER AS-17

i) Primary Segment

Business Segment : The Company''s operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense'' which are not identifiable to any business segment.

2 A) As required by Accounting Standard-18 "Related party disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Subsidiary Companies

1 Jindal Poly Films Investment Limited

2 Jindal Metal & Mining Limited

3 Jindal Metal & Mining International Limited

4 Jindal Poly Investment & Finance Company Limited (w.e.f.11.07.2012)

5 Jindal Resources (Muzambique) Lda (upto 10.09.2012)

6 Haldia Synthetic Rubber Ltd (upto 31.08.2012)

7 Trans India Mining Lda (upto 05.11.2012)

8 JPF Netherland B.V (w.e.f.18.01.2013)

9 JPF Dutch B.V (w.e.f. 21.01.2013)

10 JPF Netherland Holding B.V (w.e.f. 28.01.2013)

11 JPF USA Holding LLC (w.e.f. 23.01.2013)

12 JPF USA LLC (w.e.f. 24.01.2013)

b. Associates

1 Jindal India Powertech Limited

2 Rexor Holding SAS

(Formerly Known as Jindal France SAS)

3 Hindustan Powergen Limited

4 Consolidated Green Finvest Ltd.

c. Key Management personnels

1 Sh. Hemant Sharma

2 Sh. R.B. Pal

3 Sh. Sameer Banerjee

d. Controlling Enterprises/Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 Soyuz Trading Company Limited

3 Rishi Trading Company Limited

3.1 Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules''2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December'' 2011 and as required by Accounting Standard 11'' Loss of Rs 2159.98 lacs (previous year loss of Rs 4763.93 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

a) During the previous year the company has made a provision of Rs 102.24 Lacs for permanent diminiution of its investment in Jindal Resources Muzambique Lda ''(a subsidiary Company) which has been shown as exceptional item.

b) During the Previous year the company has made a provision of Rs 5.00 Lacs for the diminution of its investment in Haldia Sythetic Rubber Ltd (a Subsidiary Company)due to the company has not been able to start its business '' which has been shown as exceptional item.

c) During the Previous year'' the Company has reversed Rs.560.00 Lacs/-'' which was charged to profit and loss account in the previous year on account of advance paid to vendor.d) During the Previous year'' the Company has disinvested 60% of its total shareholding in Jindal France SAS (wholly owned subsidiary)'' on which there is a loss of Rs. 1876.50 lacs. The balance 40% of the holding require a provision of Rs.1245.02 lacs on account of diminution in value of investment'' thus total amount of loss for Rs.3121.52 lacs has been shown as exceptional item.

3.2 A sum of Rs.11''322''004 (previous year Rs.12''469''349) being the difference between domestic vs. imported raw material prices prevailing at the year ended on 31st March 2013 on account of advance licences excess utilized for which exports are yet to be made'' has been adjusted in the cost of raw material.

3.3 Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. Nil (Previous year Rs. 114''565''148) has been credited in the account of raw material.

3.4 Advance receivable in cash or in kind includes Rs. 28''254''171 (Previous Year Rs. 28''254''171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

3.5 Non – Current Investment includes the following:- (a) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Poly films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly Investment & Finance Co. Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

3.6 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

3.7 a) Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra'' the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years'' whichever is lower.b) Till 31.03.12'' as per accounting policy followed by the company ''the amount of such subsidy receivable was shown under the head "Revenue from Opeartions"/"Other Income". During the year'' in view of legal opinion received from experts'' these subsidy should be governed by AS-12. Based on AS-12 dealing with accounting treatment of Government grant'' such incentives of Industrial promotion subsidy received are in nature of Capital receipt and should be credited to Capital reserve instead of "Revenue from Operations/Other Income".

Accordingly'' during the year amount of subsidy receivable under the above said scheme amounting to Rs 39''76''01''338 has been added to Capital Reserve . Consequently the profit for the current year is decreased by Rs 39''76''01''338 due to the change of above accounting policy (as required by AS-5) ''and not comparable with previous year figure to that extent. Further the impact of Rs.126''90''09''595 relating to the amount of Subsidy received/receivable in preceding financial years up to 31st March'' 2012 which are reflected in "Revenue from opeartions/other income" in that financial year are not transferred to capital reserve.

3.8 In the opinion of the Board and to the best of their knowledge and belief'' the realizable value of current assets'' loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

3.9 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building'' have been charged to the former accounts wherever separation is not ascertainable.

3.10 The Company has not received from suppliers regarding their status under the Micro'' Small and Medium Enterprises Development Act'' 2006 and hence disclosures'' if any'' relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3.11 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

3.12 a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi'' Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting Standard -24 issued by ICAI.Following is selected financial information included in loss from discontinued operations for the Gulaothi and Khanvel unit:-

b) As per Accounting standard -28 " Impairment of Assets" issued by ICAI ''no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

3.13 The Board of Directors of the company at its meeting held on 26th November'' 2012 passed a resolution for demerger of its investment division with Jindal Poly Investment and Finance Company Limited. (a wholly owned subsidiary). The same has been sanctioned on dated 16th May 2013 by Honb''le High Court of Allahabad .The Company is in the course of receiving the formal order and filing the same with ROC and effect will be given in due course.

3.14 The company has pledged 428''571''429 equity shares of Rs. 10 each (Rs. 7 called and paid up) of Jindal India Powertech Limited "JIPL"'' an associate Company to IFCI Ltd as security for 14 % OCD issued by JIPL and subscribed by IFCI Ltd in terms of the Debenture subscription agreement between JIPL and IFCI Ltd for a sum of Rs 300 Crore.

3.15 Search & Seizure:

The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act''1961 during the financial year 2011-12 on various premises of the company and its directors/promoters and had seized various records of the company. Demand if any arises on this account will be provided as and when the case is finalized.

3.16 During the year one subsidiary company namely JPF Netherland B.V was incorporated and four step down subsidiaries namely (i) JPF Dutch B.V. (ii) JPF Netherland Holding B.V. (iii) JPF USA Holding LLC and (iv) JPF USA LLC were incorporated'' but no investment business activity have carried out till 31.03.2013

3.17 Previous year''s figures have been regrouped and/or rearranged wherever required.


Mar 31, 2012

1 RELATED PARTY DISCLOSURE

A) As required by Accounting Standard-18 "Related party dosclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Associates

1 Jindal India Powertech Limited

2 Rexor Holding SAS (W.e.f 29.03.2012) (Formerly Known as Jindal France SAS)

b. Companies

1 Soyuz Trading Company Limited

2 Rishi Trading Company Limited

3 Consolidated Photo and Finvest Limited

4 Jindal Photo Investment Limited

5 Consolidated Finvest and Holding Limited

6 Jindal Photo Limited

7 Jasmin Investment Limited

8 Consolidated Finvest and Investment Limited

9 Passion Tea Pvt. Limited

10 Anchor Image & Films Pvt. Limited

11 Jindal India Limited

12 Universal Foils Limited

c. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited (Formerly Hindustan Polysters Ltd.)

2 Jindal Solar Rajasthan Limited

3 Jindal Solar Powertech Limited

4 Jindal Poly Films Investment Limited

5 Jindal Metal & Mining Limited

6 Haldia Synthetic Rubber Ltd

7 Jindal Resources (Mozambique) Lda

8 Trans Indian Mining Lda

9 Jindal Metal & Mining International Limited (w.e.f.15.08.2011)

10 Jindal Poly Finance Limited (w.e.f 13.05.2011)

11 Rexor Holding SAS (Up to 28.03.2012) (Formerly Known as Jindal France SAS)

12 Rexor SAS ( Up to 28.03.2012)

31.03.12 31.03.11 Rs. Rs.

2.1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 1,276,561,221 770,481,459

2.2 Contingent Liabilities:

a. Bank Guarantees 159,829,349 128,897,507

b. Outstanding Letters of Credit (Including Capital Goods) 1,586,719,520 1,290,308,211

c. Claims against Company, not acknowledged as debts 10,768,060 16,401,284

d. Uncalled liability of partly paid shares 1,308,000,000 1,308,000,000

e. Demands raised by authorities against which, Company has filed appeals:-

i) Income Tax 58,128,668 58,128,668

ii) Excise Duties/ Service Tax 53,665,347 –

iii) Sales Tax 181,158,981 22,493,097

(iv) Custom Duties 61,366,000 61,366,000

2.3 Exceptional items includes following:- a) During the year, the Company has disinvested 60% of its total shareholding in Jindal France SAS (wholly owned subsidiary), on

which there is a loss of Rs. 1876.50 lacs. The balance 40% of the holding require a provision of Rs.1245.02 lacs on account of diminution in value of investment, thus total amount of loss for Rs.3121.52 lacs has been shown as exceptional item.

(b) Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December, 2011 and as required by Accounting Standard 11 –

I. Loss of Rs 4763.93 lacs (previous year gain of Rs 612.17 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

II. Gain on account of hedging against export exposures amounting to Rs Nil, (previous year Rs Nil) have been accounted under the head other income/(other expenses) in the profit & loss account.

(c) During the year the company has made a provision of Rs 102.24 Lacs for permanent diminiution of its investment in Jindal Resources Muzambique Lda, (a subsidiary Company) which has been shown as exceptional item.

(d) During the year the company has made a provision of Rs 5.00 Lacs for the diminution of its investment in Haldia Sythetic Rubber Ltd (a Subsidiary Company)due to the company has not been able to start its business, which has been shown as exceptional item.

(e) During the year, the Company has reversed Rs.560,00,000/-, which was charged to profit and loss account in the previous year on account of advance paid to vendor.

2.4 A sum of Rs.12,469,349 (previous year Rs.21,197,894) being the difference between domestic vs. imported raw material prices prevailing at the year ended on 31st March 2012 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 114,565,178 (Previous year Rs. 174,115,932) has been credited in the account of raw material.

2.5 Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

2.6 Non – Current Investment includes the following:- (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(d) 6 shares of Haldia Synthetic Rubber Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(e) 6 shares of Jindal Poly Finance Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

2.7 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

2.8 Under the Package Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs. 432,384,451, (previous year Rs.474, 219,586), under that scheme and the same has been shown as revenue from operation.

2.9 In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

2.10 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

2.11 The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

2.12 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

2.13 During the year a part of the Work In Progress Plant & Machinery at Gulaothi & Khanvel Units were disposed off during the year for Rs. 230.84 Lacs. The same has been adjusted from Gross Block of the WIP under Fixed Asset, the profit / loss, if any, is ascertainable only after completion of the total disposal of Plant & Machinery.

2.14 Search and seizure

The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act,1961 on 14.11.2011 on various premises of the company and its directors/promoters and had seized various records of the company .

Till date no notice has been received by the company for initiation of proceedings u/s 153C.The tax liability, if any arises will be provided as and when the case is finalized.

2.15 During the year , company has pledged 428,571,429 equity shares of Rs. 10 each (Rs.7 Called and paid up)of Jindal India Powertech limited ("JIPL"), an associate company, to IFCI Ltd as security for 14 % OCD issued by JIPL subscribed by IFCI Ltd in terms of the Debenture subscription agreement between JIPL ans IFCI Ltd for a sum of Rs. 300 crore.

2.16 Previous year's figures have been regrouped and/or rearranged wherever required.


Mar 31, 2011

31.03.2011 31.03.2010 Rs. Rs.

1. Contingent Liabilities:

a. Bank Guarantees 128,897,507 128,897,507

b. Outstanding Letters of Credit (Including Capital Goods) 1290,308,211 444,994,483

c. Claims against Company, not acknowledged as debts 16,401,284 16,721,284

d. Uncalled liability of partly paid shares 1308,000,000 3309,000,000

e. Demands raised by authorities against which, Company has filed appeals:

i) Income Tax 58,128,668 77,673,397

ii) Excise Duties - 19,680,000

iii) Sales Tax 22,493,097 22,493,097

iv) Custom Duties 61,366,000 8,160,000

2. Computation of Net Profit under section 198 of the Companies Act, 1956 for the purpose of remuneration payable to Whole Time Directors has not been enumerated as no commission is payable to them.

b) During the year an amount of Rs. 48,162,594 has been transferred to Repair and Maintenance from Capital Work in progress.

3. Term Loan installments due within next one year is amounting to Rs. 7082.27 Lacs. (Rs. 2979.91 lacs).

4. Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no. G.S.R.739 (E) dated December 7, 2006 and as required by Accounting Standard 11 –

a) Gain of Rs 612.17 lacs (previous year Rs. 4649.40 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

b) Gain on account of hedging against export exposures amounting to Rs. Nil, (previous year loss of Rs. 50.90 lacs) have been accounted under the head other income/(other expenses) in the profit & loss account.

5. A sum of Rs.21,197,894 (previous year Rs.12,394,101) being the difference between domestic vs. imported material prices prevailing at the end of the period ended 31st March 2011 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 174,115,932 (Previous year Rs. 152,977,025) has been credited in the account of raw material.

6. Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

7 (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly Films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(d) 6 shares of Haldia Synthetic Rubber Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

8. Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

9. Under the Packaging Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs.474,219,586 (Previous Year Rs.273,237,356), under that scheme and the same has been shown as income, under the head of other income.

10. In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

11. Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

12. The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

13. The Export obligation undertaken by the company for import of capital equipments under EPCG/100% EOU scheme of the Central Government at the concessional or zero rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

14. a) As per Accounting Standard 28 issued by ICAI, impairment loss on Assets at Khanvel (Being one of the unit Manufacturing PET Films of the company) was provided by the company during the year ended 31st March 2003. Now in the opinion of the management, there is no further loss on account of impairment of assets, lying at Khanvel in which operations have been suspended.

b) (i) Operations in respect of Company's units at Gulaothi were lying suspended. However carrying cost of these units are reflected at historical cost. The management is of view that there is no loss on account of impairment of assets as required by AS 28 issued by ICAI as the realisable value of these assets are higher than the carrying cost.

(ii) A part of the scrapped Plant & Machinery at Gulaothi was disposed off during the year for Rs. 77.16 Lacs. The same has been adjusted from Net Block as profit / loss, if any, is ascertainable only after completion of the total disposal of Plant & Machinery.

15. Previous year's figures have been regrouped and/or rearranged wherever required.

16 Additional information pursuant to the provision of the part II of Schedule II of the Companies, Act,1956 (as certifi ed & classifi ed by the Management)

(The Company has issued and allotted 2,30,21,138 equity shares on 26th October, 2010 as bonus shares by capitalizing reserves. Consequently the comparative EPS fi gures in all the cases have been recalculated giving effect of the Bonus Shares, as required by Accounting Standard (AS) 20).

17 Segment Reporting Policies

i) Primary Segment

Business Segment : The Company's operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense, which are not identifi able to any business segment.

18 A) As required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related Parties

a. Companies/Individuals/Associates:

1 Sh. B.C.Jindal

2 Sh. S.S.Jindal

3 Smt. Subhadra Jindal

4 Miss Akriti Jindal

5 Agile Properties Ltd.

6 Bajaloni Group Ltd.

7 Conslidated Finvest & Holdings Ltd.

8 Consolidated Buildwell Ltd.

9 Consolidated Photo & Finvest Ltd.

10 Consolidated Realtors Ltd.

11 Jesmine Investment Ltd.

12 Jindal Imaging Ltd.

13 Jindal India Ltd.

14 Jindal Meadows Ltd.

15 Jindal Photo Investments Ltd.

16 Jindal Photo Ltd.

17 Jindal Realtors Ltd.

18 Jindal India Thermal Power Ltd.

19 Jumbo Finance Ltd.

20 Jupax Barter Pvt..Ltd.

21 Pasion Tea Private Ltd.

22 Rishi Trading Co. Ltd.

23 Soyuz Trading Co. Ltd.

24 Vigile Farms Ltd.

25 Jindal India Finvest & Holdings Limited

26 Mandakini Coalmines Limited

27 Jindal India Powertech Limited

28 Jindal India Powerventures Limited

29 Jindal Buildmart Limited

30 Jindal Realmart Private Limited

31 Hindustan Powergen Limited

32 Jindal Minerais & Metais (Mozambique) Lda

33 Consolidated Green Finvest P Ltd.

b. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited

2 Jindal France SAS

3 Rexor SAS

4 Jindal Solar Rajasthan Limited

5 Jindal Solar Powertech Limited

6 Jindal Poly Films Investment Limited (w.e.f. 03.11.2010)

7 Jindal Metal & Mining Limited (w.e.f. 16.11.2010)

8 Haldia Synthetic Rubber Ltd (w.e.f. 21.02.2011)

9 Jindal Resources (Mozambique) Lda (w.e.f. 05.10.2010)

10 Trans Indian Mining Lda (w.e.f. 17.03.2011)

c. Key Management Personnel

1 Sh. R.B. Pal

2 Sh. Sameer Banerjee

3 Sh. Sanjay Mittal


Mar 31, 2010

31.03.10 Rs. 31.03.09 Rs. 1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 61,016,528 143,035,496

2. Contingent Liabilities:

a. Bank Guarantees 128,897,507 90,689,607

b. Outstanding Letters of Credit (Including Capital Goods) 444,994,483 1,222,201,138

c. Claims against Company, not acknowledged as debts 9,369,284 94,931,000 d. Uncalled liability of partly paid shares 3,309,000,000 1,284,000,000 e. Demands raised by authorities against which, Company has filed appeals: -

i) Income Tax 77,673,397 445,38,332

ii) Excise Duties 27,032,000 274,61,000

iii) Sales Tax 22,493,097 224,93,097

iv) Custom Duties 8,160,000 388,22,000

3. Computation of Net Profit under section 198 of the Companies Act, 1956 for the purpose of remuneration payable to Whole Time Directors has not been enumerated as no commission is payable to them.

4. Term Loan installments due within next one year is amounting to Rs 2979.91 Lacs. (Rs 3812.99 lacs).

5. Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notificaton no.G.S.R.739 (E) dated December 7, 2006 and as required by Accounting Standard 11 –

a) Loss of Rs 4649.40 lacs (previous year Rs 6237.83 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

b) Gain/(Loss) on account of hedging against export exposures amounting to Rs 50.90 lacs, (previous year loss of Rs 1400.55 lacs) have been accounted under the head other income/(other expenses) in the profit & loss account.

6. A sum of Rs.12,394,101 (previous year Rs.14,972,861) being the difference between domestic vs. imported material prices prevailing at the end of the period ended 31st March 2010 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 152,977,025 (Previous year Rs. 150,031,046) has been credited in the account of raw material.

7. Advance receivable in cash or in kind includes Rs. 28,254,173 (Previous Year Rs. 28,254,173 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

8. (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Packaging Films Ltd.(Under amalgamation with Hindustan Powergen Ltd) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

9. Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

10. Under the Packaging Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs. 273,237,356, (previous year Rs. 89,168,202), under that scheme and the same has been shown as income, under the head of other income.

11. In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

12. Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

13. The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

14. The Export obligation undertaken by the company for import of capital equipments under EPCG/100% EOU scheme of the Central government at the concessional or zero rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

15. a) As per Accounting Standard 28 issued by ICAI, impairment loss on Assets at Khanvel (Being one of the unit Manufacturing PET Films of the company) was provided by the company during the year ended 31st March 2003. Now in the opinion of the management, there is no further loss on account of impairment of assets, lying at Khanvel in which operations have been suspended.

b) Operations in respect of Companys units at Gulaothi were lying suspended. However carrying cost of these units are reflected at historical cost. The management is of view that there is no loss on account of impairment of assets as required by AS 28 issued by ICAI as the realisable value of these assets are higher than the carrying cost.

16. Previous years figures have been regrouped and/or rearranged wherever required.

17. Additional information pursuant to the provision of the part II of Schedule II of the Companies Act,1956 (as certified & classified by the Management)

18. Segment Reporting Policies

i) Primary Segment

Business Segment : The Companys operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense, which are not identifiable to any business segment.

19 A) As required by Accounting Standard -18 "Related party disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Companies/Individuals/Associates

1 Sh. B.C.Jindal

2 Sh. S.S.Jindal

3 Smt. Subhadra Jindal

4 Miss Akriti Jindal

5 Agile Properties Ltd.

6 Bajaloni Group Ltd.

7 Conslidated Finvest & Holdings Ltd.

8 Consolidated Buildwell Ltd.

9 Consolidated Photo & Finvest Ltd.

10 Consolidated Realtors Ltd.

11 Jesmine Investment Ltd.

12 Jindal Imaging ltd

13 Jindal India Ltd

14 Jindal Meadows Ltd.

15 Jindal Photo Investments Ltd

16 Jindal Photo Ltd

17 Jindal Realtors Ltd

18 Jindal India Thermal Power Ltd.

19 Jumbo Finance Ltd

20 Jupax Barter Pvt..Ltd

21 Pasion Tea Private Ltd.

22 Rishi Trading Co. Ltd

23 Soyuz Trading Co. Ltd

24 Vigile Farms Ltd.

25 Jindal India Finvest & Holdings Limited

26 Mandakini Coalmines Limited

27 Jindal India Powertech Limited

28 Jindal India Powerventures Limited

29 Jindal Buildmart Limited

30 Jindal Realmart Private Limited

31 Hindustan Powergen Limited

32 Indian Software Consultancy Limited

b. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited (Formerly Hindustan Polysters Ltd.)

2 Jindal Packagings Limited ( up to 23.09.2009)

3 Jindal France SAS

4 Rexor SAS

5 Jindal Solar Rajasthan Limited (w.e.f. 10.02.2010)

6 Jindal Solar Powertech Limited (w.e.f. 11.02.2010)

c. Key Management personnels

1 Sh. Sameer Banerjee

2 Sh. Sumant Singhal (up to 20.01.2010)

3 Sh. Sanjay Mittal (up to 31.07.2009)

4 Sh. R.B. Pal (w.e.f. 17.12.2009)

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